Indian economy grew by 8.2 per cent in the first quarter of the current fiscal, the highest in over two years.
The Finance Ministry has exuded confidence that the economy could exceed estimated 7.5 per cent growth in the current fiscal. Attributing the high quarterly performance to reforms and fiscal prudence, Finance Minister Arun Jaitley said that India’s GDP for the first quarter of this year growing at 8.2 per cent in otherwise an environment of global turmoil represents the potential of New India.
Economic Affairs Secretary S C Garg said that manufacturing sector grew by 13.5 percent which signals very good turnaround in the sector. He said the construction sector also grew robustly at about 8.99 per cent. Garg expressed confidence that India will definitely be the highest growing economy in the world. Asked if there could be double-digit growth, Garg said 10 per cent growth might happen in one quarter or so but 10 per cent for annual growth is very very ambitious and very big thing.
On the falling rupee, he said it will soon be in the range of Rs 68-70 against the US dollar. The rupee crashed to a lifetime low of 71 per US dollar on Thursday.
Garg also said that the fiscal deficit target of 3.3 per cent for the current fiscal would be met.
Finance Secretary Hasmukh Adhia said the GDP growth rate of 8.2 per cent for the April-June quarter of fiscal year 2018-19 indicates clearly that several structural reforms introduced such as Goods and Services Tax have started giving rich dividends.
Industry bodies have said India’s economic growth of 8.2 per cent in the April-June quarter is an outcome of reforms undertaken by the government in the last four years.
FICCI President Rashesh Shah said the double-digit growth in manufacturing comes on back of a low base but does reflect the positive momentum already seen in some of the key lead indicators of economic activity.
Assocham President Sandeep Jajodia said the first quarter GDP numbers augurs very well for the entire fiscal Final Year 2018. Commenting on the GDP growth data, PHD Chamber of Commerce President Anil Khaitan said the effect of dynamic reforms undertaken by the government is becoming visible.
In a related development Reserve Bank of India said Non food credit growth in the system accelerated to 10.6 per cent for July as compared to previous year, driven by loans to the services sector growing at the faster clip. Credit to the services sector grew 23 per cent for the reporting period, up from the year-ago period’s 4.9 per cent.